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Ultimate Checklist to Maximize Value Before an Accounting Practice Sale
M&A
Ultimate Checklist to Maximize Value Before an Accounting Practice Sale
Maximizing your firm’s value before a sale starts with a strategic plan. Don’t just list your practice, prepare it. Define clear exit goals, strengthen operational efficiency, and ensure legal and financial compliance. These steps not only boost your firm’s attractiveness to serious buyers but also smooth the transition process.
That’s where MYCPE ONE steps in. MYCPE ONE offers expert help in accounting M&A. We connect you with advisors, simplify the sale process, and help you find qualified buyers. When you prepare documents, improve your brand, or build leadership, a good plan helps you save money. In this blog, the checklist will guide you to increase your firm’s worth and sell with confidence.
What is an Accounting Practice?
An accounting practice involves recording the daily financial activities of a firm. It ensures the accurate preparation of legally required annual financial statements.
Here’s a comprehensive table to give an idea of crucial steps that can help you maximize value before an accounting practice sale:
Phase
Step
Description
Phase 1: Plan Well
Set Exit Goals
Define financial targets and align stakeholder expectations.
Conduct Valuation
Hire experts to assess your firm’s worth.
Strengthen Leadership
Create succession plans and diversify revenue streams.
Phase 2: Work on Your Finances
Boost Financials
Increase revenue, reduce costs, and improve margins.
Streamline Operations
Eliminate inefficiencies and document processes.
Phase 3: Enhance Value
Enhance Brand
Improve reputation, customer engagement, and market presence.
Prepare Documents
Organize financial and legal records for due diligence.
Phase 4: Get Ready to Sell
Identify the Right Buyer
Identify strategic or financial buyers aligned with your goals.
Plan the Exit
Structure the deal, mitigate risks, and address challenges.
Phase 5: Legalize the Process
Legalize the Process
Ensure all legal formalities, contracts, and compliance needs are met.
Firms can choose different accounting methods but must follow set rules. Generally Accepted Accounting Principles (GAAP) provide a standard framework issued by the Financial Accounting Standards Board (FASB).
1. How to set Exit Goals Before an Accounting Practice Sale
Every sale, merger, or joint venture follows a proven path, even if details vary. In cities like Chicago, Dallas, or Phoenix, local market trends influence your strategy.
You can also work with a transaction advisor who understands accounting firm exits. Exit goals keep your sale structured and prevent last-minute compromises.
A well-set goal ensures you attract the right buyer and get the value you deserve. If you're preparing for an accounting practice sale, start by planning the end:
Start with a firm assessment
Evaluate your market position
Review leadership and team structure
Examine your client mix
Assess systems and processes
Analyze your financial track record
Check governance and decision-making structure
Revisit your firm’s scalability and operational readiness
Identify your ideal buyer
Consider who should benefit from the deal
2. Conduct Valuation
If a global brand like Skechers can pivot smartly with the right valuation and buyer, accounting firms can too.
Their $9.4 billion private equity deal with 3G Capital wasn’t just about shoes. It was about timing, value, and future vision.
Here are some valuation methods for accounting firms:
1. Gross Revenue Multiple
Commonly valued at around 1x trailing 12-month revenue, though this varies by firm size and market.
2. Net Cash Flow Multiple
Reflects actual profitability and helps buyers compare potential returns.
3. Market Approach
Compare your firm to recent sales of similar practices in your area or niche.
4. Asset-Based Approach
Values both tangible assets (e.g., equipment) and intangible assets (e.g., goodwill, client contracts).
5. Cost Approach
Estimates of value based on the cost to rebuild the firm, minus depreciation. Useful for firms with substantial physical assets.
3. Create Succession to Strengthen Leadership
A strong succession plan directly increases the value of your accounting practice sale. Buyers are drawn to firms that can run independently of the current owner.
If you're working 2,500+ hours a year with no unplugged time off, it signals a burnout risk.
Organized systems and documented processes are essential.
Explore AI tools tailored for finance and accounting workflows.
Micromanaging or staying too involved in post-sale can undermine the deal.
Evaluate your successor’s capabilities and timeline to lead.
Buyers want firms with recurring revenue and diverse offerings.
Add services like bookkeeping, payroll, financial planning, or advisory support. These increase year-round income and help position your firm as a full-service firm.
5. How Streamlining Can Maximize Value Before an Accounting Practice Sale
Look at daily workflows, client handling, and how your team uses technology. Review where work slows down or tasks repeat unnecessarily.
To boost practice value:
Audit workflows for inefficiencies.
Automate tasks with QuickBooks, Xero, or Zapier.
Upgrade to modern tools for accuracy and speed.
Use a CRM like HubSpot, Zoho, or Salesforce.
Centralize client data and automate communication to strengthen relationships and improve firm appeal.
MYCPE ONE M&A Advisory focuses only on accounting firms for sale. With over 1,000 firms served, they understand the challenges involved in every accounting practice sale, from valuation to handover.
Their team brings years of experience and a tailored process that supports both buyers and sellers through each step.
1,000+ registered buyers looking for accounting practices for sale
500+ valuation reports downloaded by interested firms
75+ successful sales already completed
$250M+ in total closed deals
Selling your accounting practice doesn’t have to be overwhelming. MYCPE ONE offers free seller due diligence to help you understand your firm’s market position.
Read a detailed case study on “Turnaround and Sale of Distressed Accounting Practice”.
MYCPE ONE Seller’s Guide Simplifying Your Accounting Practice Sale
Selling your accounting firm is a big move, but the right steps can help you get the best deal with less stress.
Before you proceed for seller registration, here’s a simplified breakdown of how to prepare and sell confidently:
Get Your Firm Ready to Sell : Buyers want clean financials, documented processes, and stable client relationships.
Know How Valuation Works : Firms are usually valued using EBITDA, revenue multiples, or discounted cash flow. Factors like growth, client mix, firm location, impact pricing.
Manage the Sale Smoothly : Review offers carefully, prep for due diligence, and plan a strong transition for clients and staff. Post-sale, handle non-competes and tax planning with the right professionals.
8. Plan the Exit
Think through the price, terms, and conditions that would make selling worthwhile.
Selling privately, to a PE firm, or via merger depends on your goals. Some dream of IPOs, but most succeed by buying an accounting practice or selling to strategic buyers.
To further explore what makes an accounting practice attractive to buyers, here are some key takeaways from a conversation between John Warrillow, founder of The Value Builder System, and Saul Sony, Director – Partner Success at MYCPE ONE.
Initial Success Isn’t Always Sellable
Founder Dependency Hurts Value
Harsh Advice Sparked Change
Strategic Shifts Made the Difference
Successful Exit to Gartner
These changes led to the acquisition of his firm by Gartner Group
9. Legalize the Process
Work closely with local financial advisors, lawyers, and intermediaries to draft clear agreements.
Have the buyer review and sign all terms and conditions to avoid future disputes.
Protect your firm by securing assignable non-solicitation agreements from key employees.
Confirm that your buy-sell agreement includes the right buy-out options.
Conclusion
Selling your accounting practice is a major milestone, and preparation is key to maximizing its value. By using this checklist, you can make your business more appealing to buyers. This will help you have a smoother and more profitable exit.
Whether you're planning to sell soon or years down the line, now is the time to act. MYCPE ONE can guide you through every stage of your accounting practice sale. It provides expert support, strategic connections, and peace of mind as you transition to your next chapter.
FAQs
Selling a firm isn’t always easy. It requires planning, legal prep, and the right buyer. MYCPE ONE simplifies the accounting practice sale by offering expert guidance, accurate valuation, and buyer connections. From documentation to deal closing, we make your exit efficient and profitable.
When a firm is sold, the proceeds are typically shared among shareholders, founders, creditors, and sometimes employees with equity or bonuses. The exact payout depends on the firm’s structure, liabilities, and sale terms.
You’ll need accurate financial records, legal contracts, tax filings, client agreements, and compliance documentation.
The timeline for selling an accounting practice typically ranges from 6 to 12 months.
Saul is a leading expert in partnerships, content strategy, and M&A advisory for the accounting and professional services industry. He specializes in creating impactful learning content, fostering strategic partnerships, and driving firm growth through insightful tax strategies and dealmaking. Saul helps professionals scale their practices, navigate industry shifts, and maximize opportunities in accounting and CPE-focused initiatives.
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